Tax implication on payment to mother

183 views 5 replies
I am a female assessee aged 34 years and i wish to give my savings of Rs 3.5 lakhs to my mother who is a senior citizen so that she could earn interest income on it. Neither me nor my mother fall under taxable limit however we file our itr too. Is it necessary to issue gift deed in this matter to avoid tax or i can straightaway transfer amount in my mothers account?
Replies (5)
Any amount or property received from relatives is exempted from tax. Relatives include mother, father, brother, sister, son, daughter etc.. So, Yes u can give.

The income she is going to earn from the gift u give is taxable. But since she is a senior citizen, it will be covered under basic exemption limit.

Crux is u can give any amount to ur Parents and it is not subjected to tax.
Thank u sir...but my concern is whether it is necessary to issue gift deed in this case ?
Not req. Gift deeds are meant for gift of immovable properties like land, buildings etc and to some extent movable properties like motor vehicles. But in practice, absolutely there is no need for Gift deed for money transfer.
Thanx a lot sir for sharing this valuable information. Obliged 🙏
You're welcome. Give my wishes to your mother. Have a good day


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register